German GDP Shrinks 0.5%,
But Data Indicate Stability

FRANKFURT -- The German economy contracted during the first quarter, but the most recent data reveal that the economy has stabilized and may even be headed into a mild recovery.

The Federal Statistics Office said Wednesday that gross domestic product shrank by 0.5% in the first three months of the year, compared with the fourth quarter of last year. As such, it was the second consecutive quarter of contraction and, according to...